Inflation Subdued But -- Surprise, Surprise -- Healthcare Prices Going Through Roof

CPI Shelter And Medical, March 2010CPI Shelter And Medical, March 2010


Relax!  “Core” inflation is subdued.As you already know, what that means is that prices aren’t skyrocketing for people who don’t eat or drive.  So if you don’t do either of those things, you can rest easy.


Well, sort of.

Because to be insulated from rising prices, you actually also need to be one of those people who doesn’t occasionally get sick, see doctors, buy medicine, or shop at drugstores.


Because healthcare prices are once again going through the roof.

Here’s a quick glance at core inflation, healthcare inflation, and overall inflation expectations (which, thankfully, are also subdued) >

The CPI, March 2010 (Year over Year price change)

Prices for shelter (red) and healthcare (blue)

Inflation Expectations (back to pre-Lehman levels)

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